Configuring Service Contracts in SAP Service Cloud

A contract is a legally binding document with the customer for a specific period of time that promises certain products, services, and service levels. Service contracts allow you to manage customer support agreements between you and your customers for items according to the warranty coverage, and track details about the type of support that your customers are eligible for as long as the contract is active. The contract administration team defines contract details such as entitlements, limited products, and pricing. Depending on the contract template, other details such as support coverage based on hours, service level agreements (SLAs), and support types may also be included. 

Service contracts play a critical role in managing the relationship between service providers and customers, ensuring that expectations are clearly defined and met throughout the duration of the agreement. They provide a framework for collaboration, accountability, and continuous improvement in service delivery processes. These contracts are commonly used in various processes like scoping of services, and payment terms.   

The following graphic reflects the main components and capabilities of a service contract in SAP Service Cloud.

• Customer Information: This section outlines the details of the customer or client entering into the contract. It may include the customer's name, contact information, billing address, and any other relevant identifiers. 
• Covered Objects: Define, which products and installed bases are entitled to service. 
• Repair Items: Here, the contract lists specific repair items or services that the service provider agrees to perform. This may include routine maintenance, troubleshooting, repairs, or replacements. 
• Status: This section defines the status of the service contract, including its activation date, duration, and any relevant terms or conditions. 
• Template: Contract templates serve as feature to create new contracts in a quick manner. 
• Approval: For example, involving a superior manager to control approvements of service contracts before they get activated. 
• Follow-up Documents: The contract may reference additional documents or annexes that provide further details or specifications related to the covered objects, repair items, or other aspects of the agreement, for example, opportunity, sales quotation and sales order. 
• Renewal: This section specifies the conditions under which the contract can be renewed, including renewal terms, notice periods, and any changes to the terms of the agreement upon renewal. 

Enabling service contract management is done by adding the feature in scoping and specifying questions. Then, you fine tune item types, number ranges, and ensure that users have access to the Contracts work center. Below is a summary of the steps: 

1. Enable service contract in scoping. 

   In scoping, ensure that 'Service Contract Management' is selected. 

   
2. Grant users access to contracts. Ensure that the CONTRACT_WCF (Contracts) work center is selected.
   
3. Create a contract.
   

Watch the following video on how to enable and create a service contract in SAP Service Cloud. 

Summary Steps 

1. Activate 'Service Contract Management' in scoping.
2. Verify that the user has permission to access the Contracts work center. 
3. Create a contract. 

You should now be able to activate and use service contracts in SAP Service Cloud. 

That concludes this unit, Setting up Maintenance Plans and Contracts in SAP Service Cloud, where you completed the following lessons: 

Lesson 1: Configuring Maintenance Plans in SAP Service Cloud 

Lesson 2: Configuring Service Contracts in SAP Service Cloud